The companies gave themselves three and a half months to start the partnership when it was announced June 12, and Schmidt's latest comment indicates the deal is still on that schedule. That time period runs through about the first week of October.

"We are going to move forward," Schmidt told Bloomberg Television.

"We are in the process of talking to the government. They've not indicated one way or the other how they're dealing with us," he said of the antitrust scrutiny. "We always worry a little bit, but we think our arguments are pretty strong...Yahoo has made it very, very clear they're going to take the best parts of their network and ours and combine them."

The deal is the most prominent part of Yahoo's effort to become more financially successful. The Internet company said it expects up to $800 million in revenue and $250 million to $450 million in new operating cash flow over the first year of the deal.

About the author

Stephen Shankland has been a reporter at CNET since 1998 and covers browsers, Web development, digital photography and new technology. In the past he has been CNET's beat reporter for Google, Yahoo, Linux, open-source software, servers and supercomputers. He has a soft spot in his heart for standards groups and I/O interfaces.
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